American Oil and Gas Reporter - August 2019 - 121

SpecialReport: Marcellus/Utica Activity Profile
In the Upper Marcellus, the CANNELLA
No. 24HC averaged 26 MMcf/d through
the first 30 days, Chesapeake reports.
Sharing Knowledge
Sharing knowledge among all its teams
across its Appalachian Basin operations
is helping Southwestern Energy utilize
the latest drilling and completion innovations and push laterals to record lengths
as it builds gas reserves and bolsters its
position as the region's third-largest liquids
producer.
"Rapid application of new knowledge
is a key driver of our overall progress,"
President and Chief Executive Officer
Bill Way says.
That progress includes an 18,683-foot
lateral in Pennsylvania early this year
and Southwestern's continual push to
drill and case multiple wells in Pennsylvania and West Virginia with laterals exceeding 18,000 feet.
During the first quarter alone, the
company drilled five ultralong laterals in
excess of 15,000 feet applying lessons
learned from ongoing drilling throughout
its holdings, says Clay Carrell, executive
vice president and COO. Those assets
include estimated gas reserves approaching
5 Tcf in 184,024 net acres in the northeast
part of the Appalachian Basin and almost
8 Tcfe (46 percent natural gas liquids) in
297,445 net acres in the southwestern
portion of the basin.
Production this year is expected to
average more than 1.2 Bcf/d in the
northeast and 833 MMcfe/d in the southwest, according to company projections.
Early in 2019, production was up 14
percent, including a 34 percent increase
in liquids production, which is expected
to average more than 75,000 barrels a
day this year. The company's total resource potential is an estimated 53 Tcfe
with Southwestern holding 3,200 potential drilling locations.
Longer laterals, direct sourced sand,
a water pipeline system designed to transport freshwater, and vertical integration
that includes the company owning seven
super-spec drilling rigs and one frac fleet
are driving down well costs and providing
greater operating flexibility, Carrell says.
"Overall well costs are planned to be
down 25 percent. We have indicated that
we have a goal of achieving a well cost
average of $875 per foot in 2019, and we
are on target," he reports.
In terms of improving its cost efficiency,
Carrell also notes that SWN's efforts to
transport water by pipeline have resulted

in savings of $500,000 per well while reducing truck traffic and associated costs.
Southwestern Energy's comprehensive
approach to water management includes
making its Appalachian operations "freshwater neutral," a goal it first achieved in
2016 and has maintained every year since.
In essence, freshwater neutral means that
for every gallon of freshwater Southwestern uses in its operations, it offsets
an equivalent amount or more through

water recycling and conservation projects,
explains Carrell.
In the first quarter alone, Southwestern
reported that it set new company records
for lateral length (ultralong laterals drilled
both in West Virginia and in Pennsylvania),
daily footage drilled (8,300 feet in 24
hours) while staying in the target zone
the entire time, and the number of stages
completed (8.3 stages) on a single pad in
one day.
❒

PRECISION GEOPHYSICAL, INC.
THE LEADING PROVIDER OF 2D & 3D SEISMIC IN NE AMERICA SINCE 1990

As the industry
ramps activity levels,
Precision is ready
to rock 'n roll!
Give Precision Geophysical a
call on your next seismic job.
Call us for your seismic needs
in the Marcellus Shale and
Utica Shale.
3D and 2D Surveys.
Shothole and vibroseis.
State of the art equipment - 24 bit recording.
Aram ARIES I and II - 1,000s of channels available.
Two crews to serve the seismic needs of Appalachian Basin
producers in Illinois, Kentucky, Maryland, Michigan, New York,
Ohio, Pennsylvania, Tennessee and West Virginia.
Put our 29 years of experience in the Appalachian Basin to
work on your next seismic project.
All employees are HSE trained per OSHA standards
and have been trained in CPR.

Tired of waiting on your seismic? Call Precision Geophysical.
PRECISION GEOPHYSICAL INC.
2695 SR 83 SOUTH MILLERSBURG, OH 44654

PHONE 330-674-2198
STEVE@PGIGEO.COM
AUGUST 2019 121



American Oil and Gas Reporter - August 2019

Table of Contents for the Digital Edition of American Oil and Gas Reporter - August 2019

Contents
American Oil and Gas Reporter - August 2019 - Intro
American Oil and Gas Reporter - August 2019 - 1
American Oil and Gas Reporter - August 2019 - 2
American Oil and Gas Reporter - August 2019 - Contents
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